For many new entrepreneurs, the focus is on the now. “Am I making enough money to pay my bills right now?” “Can I afford to keep the lights on?” “Will I make payroll next week?” The challenge isn’t always whether or not your business is bringing in enough money; it’s whether or not you are financially skillful enough to make a penny last. Asking if money is important is a pretty silly question. Of course, money is important. Mainly, we want to discuss why it’s important. When your cash flow is consistent, you no longer have to worry about your bills getting paid or whether you can keep the heat on. As a leader, our question is: Are you financially adept enough to use money as fuel to push you towards a future where you have control over your time because your money is WORKING FOR YOU versus YOU WORKING FOR YOUR MONEY?
Let’s start with the obvious reason that money is important to an entrepreneur: it keeps your business running. Your primary focus right now is on bringing in enough money to pay your people, all of your business’s bills, and have enough left to pay yourself. At the start of your career, forward-thinking means planning out your finances for the next week. However, we want to encourage you to start thinking further and further out. For your business to grow, you have to master your finances and learn how to make it last longer.
A few months back, the COVID-19 virus started spreading rapidly throughout the United States. This pandemic blindsided our management team here at NX Direct. Never would we have expected something of this magnitude to happen. Our business has been forced to temporarily shut down in an effort to help slow the spread of the virus and help keep our people safe. What has helped our company stay afloat is that, although we didn’t plan for a pandemic, we prepared for our business to hit some financial obstacles. We had enough money in the bank to pay our business bills and a few key team members. You never want something wrong to happen, but it is always smart to plan for it just in case!
Money is important. This fact is unwavering and will never change. At the start of your career, every single penny counts. As your business grows and you bring in more money, it allows you to sit a little more comfortably. Mastering finances is a skill that all successful business leaders have gained. As their skill grows, they earn more control over their time, giving them more opportunities to help others. If your goal in life is to run a successful business and to be a great leader for your people, then understanding the importance of money is essential. From our team at NX Direct, best of luck as you start diving into the world of finances!